Bank Deposit: Millions of Indians trust banks with their hard-earned savings, but have you ever wondered what happens if the bank faces trouble? While bank failures are rare in India, understanding deposit insurance can bring peace of mind.
Key Points
- Deposit Insurance Protects Up to ₹5 Lakhs: The Deposit Insurance and Credit Guarantee Corporation (DICGC) safeguards your bank deposits up to ₹5 lakh per account.
- Multiple Accounts, Single Limit: This ₹5 lakh limit applies across all your accounts, regardless of type (savings, current, FD) or bank.
- Safeguards Against Bank Failure: In case of a bank failure, DICGC reimburses depositors up to the insured limit.
- Not All Losses Covered: This insurance doesn’t cover theft, robbery, or natural disasters.
Understanding the ₹5 Lakh Limit
It’s crucial to remember that the ₹5 lakh limit applies per depositor, per bank. This means:
- If you have multiple accounts in the same bank, the total insured amount remains ₹5 lakh.
- If you have accounts in different banks, each bank will insure up to ₹5 lakh per account separately.
What’s Not Covered?
While DICGC insurance provides substantial protection, it’s important to understand its limitations:
- Thefts, Robberies, and Disasters: These losses are generally not covered by DICGC insurance.
- Amounts Exceeding ₹5 Lakh: Any amount exceeding the ₹5 lakh limit is not guaranteed and may be subject to recovery efforts.
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